Regulatory Duty Reverted on Imported Cars

Regulatory Duty Reverted on Imported Cars

The case was filed against the increase in regulatory duty on imported cars. The case was filed by Audi, Porche and BMW Pakistan as there sale was declining due to it. Also, due to major reason that this SRO was against the auto policy 2016-2021. However, the result of this case was finally announced after five months nullifying the SRO. For the background knowledge in October 2017 – SRO 1035 (1)/2017 was issued by Government of Pakistan. In this SRO, Regulatory Duty was imposed on approximately 730 imported goods including grocery items, automobiles, and steel. This SRO was not welcomed by many consumers as this was certainly going to have a major impact on their pockets. Yet on the other hand from Government point of view, the SRO was imposed to protect local producers. Further helping to stop the devaluation of money.

The case was filed by car importers including Audi, Porsche, and BMW Pakistan in Lahore and Sindh High Courts. The request was put forward by the importers to declare this SRO nullify. Since its harming the business to great extent. On February 7, 2018, Sindh High Court declared SRO ultra vires. Ultra vires particularly mean that the SRO was passed by such authority which does not have the rights to do so. After the SRO has been declared null by Sindh High Court. Importers are hopeful that Lahore High Court will nullify it as well. Moreover, even the SRO which was imposed on 730 other imported goods is to be reverted as well. However, the new prices will be effective from next month. Whereas until that time the imported cars will be sold at the same price. Adding on, for those consumers who have paid extra RD after SRO will be refunded.

In conclusion, there were four major orders issued by the court. Firstly, the SRO is declared ultra vires. Secondly, absolutely no one can impose RD through SRO on imported goods. Thirdly, the extra amount paid by consumers during this time will be paid back. Lastly, the government can appeal against the court order within next 30days.